US-based natural gas and oil well operator Diversified Gas & Oil (DGO) has acquired certain assets from EdgeMarc Energy and several of its subsidiaries.
DGO noted that all the terms and conditions of the acquisition were fully met.
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The $50m acquisition includes approximately $48m in cash after customary purchase price adjustments, which were funded from DGO’s existing debt facilities.
DGO acquired 12 unconventional Utica natural gas production wells and associated facilities in Monroe and Washington counties within the US state of Ohio.
It also completed the acquisition of three drilled but uncompleted wells and undeveloped land comprising deep Utica rights.
DGO paid approximately $1.6m towards the purchase of EdgeMarc’s natural gas financial hedge portfolio.
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By GlobalDataCommenting on the acquisition, Diversified Gas & Oil CEO Rusty Hutson said: “We are pleased to close this acquisition just three weeks after a successful bid.
“We now turn our attention to fully integrating these accretive assets and to determining the optimal way to realise additional value for the acquired DUCs and undrilled locations.”
Last month, the company signed binding agreements to acquire two separate packages of natural gas gathering systems in Pennsylvania and West Virginia from Dominion Gathering and Equitrans.
In April, DGO closed the acquisition of certain gas-producing assets in Pennsylvania and West Virginia in a $400m transaction. The assets were acquired from HG Energy II Appalachia, an affiliate of natural gas producer HG Energy.
The sale and purchase agreement was initially signed in March.
Last July, DGO completed the $575m acquisition of EQT’s producing gas and oil and midstream assets in the southern Appalachian Basin in the US.
